CEE MARKETS 2-FX eases, market awaits more cbank action

                                
 * Stocks open lower to weigh on currencies
                                
 * Currencies lower after sharp gains in previous session
                                
 * Markets look for more after Monday's cbank actions
                                
 
  (Adds fixed income, detail)
                                
 By Dagmara Leszkowicz
                                
 WARSAW, Feb 24 (Reuters) - Lower stocks knocked back central
European currencies on Tuesday, as the Polish zloty, Czech crown
and Hungarian forint gave up some of Monday's sharp gains
following unprecedented joint verbal intervention.
                                
 Regional central bankers launched a joint push on Monday to
support their currencies that sank to multi-year or record lows
in the past week, saying their sharp drop did not reflect their
economic fundamentals and was overdone. [ID:nLN571478]
                                
 But the rally proved short-lived with gains of more than 3
percent nearly wiped out by Tuesday, and dealers and analysts
said the words would have to be backed up by action.
                                
 "Verbal intervention can only have a temporary impact if not
backed by concrete policy response," said Raffaella Tenconi of
Wood & Co. 
                                
 "... In the nearer term, however, we believe weakening
economic fundamentals and continuing uncertainty over all of the
EU-wide policy responses to the crisis prevent a significant
recovery in CE4 currencies."
                                
 At 0936 GMT the Polish zloty <EURPLN=> was down 0.5 percent
from Monday's close at 4.67 to the euro. The Hungarian forint
<EURHUF=> eased 0.3 percent to 297.5 per euro, while the Czech
crown <EURCZK=> was down 0.4 percent.
                                
 The Polish, Czech and Hungarian units were up around 1
percent over closing levels from last Friday.
                                
 Currencies have been hammered by sinking economic outlooks
and rising worries over central Europe's exposure to foreign
credit that is drying up, which has knocked the region sharply
off record highs seen over the summer.
                                
 The zloty has lost almost a third of its value since August,
creating losses for Polish companies that had bet on more
appreciation through currency options. The sinking currencies
have also raised borrowing costs for borrowers that sought
cheaper foreign currency loans in recent years.
                                
 In Romania, the leu <EURRON=> was steady after a negative
open for the region's stocks along with a rising dollar tripped
up currencies.
                                
 "The Dow fell yesterday, but the main influence is the
euro/dollar," one Budapest-based dealer said.
                                
 Investors turned attention to Poland's central bank that is
expected to slow policy easing on Wednesday with a 25 basis
point cut in borrowing costs. [ID:nLN421365] Hungary's central
bank left rates unchanged on Monday.
                                
 Analysts have said falling interest rates have contributed
to sharply declining currencies this year. 
                                
 Bond markets were quiet on Tuesday, with a poor showing in
Polish retail sales in January having little impact.
[ID:nLO481771]
                                
 "The data did not change a general view for the economy as
the trend (of falling sales) is obvious," said Maciej Slomka,
chief dealer at Pekao bank in Warsaw.
----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   28.368   28.25   -0.42%    -5.69%
Polish zloty     <EURPLN=>    4.671    4.646  -0.54%   -11.9%
Hungarian forint <EURHUF=>  297.5    296.54   -0.32%   -11.41%
Croatian kuna    <EURHRK=>    7.383    7.38   -0.04%    -0.24%
Romanian leu     <EURRON=>    4.284    4.282  -0.05%    -6.29%
Serbian dinar    <EURRSD=>   94.089   94.44   +0.37%    -4.9%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +26 basis points to  235bps over bmk*
4-yr T-bond   CZ4YT=RR    -16 basis points to  +238bps over bmk*
8-yr T-bond   CZ8YT=RR    -8 basis points to  +303bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +1 basis points to  +436bps over bmk*
5-yr T-bond   PL5YT=RR   +4 basis points to  +367bps over bmk*
10-yr T-bond PL10YT=RR   +1 basis points to  +311bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   -21 basis points to  +1163bps over bmk*
5-yr T-bond   HU5YT=RR   -54 basis points to  +1002bps over bmk*
10-yr T-bond   HU10YT=RR -45 basis points to  +850bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0936 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
                                
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 (Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; Editing by Andy Bruce/Victoria Main)